The Securities and Exchange Board of India has decided give its nod to set up Real Estate Investment Trusts and Infrastructure Investment trust to give a new lease of life to the construction industry.

The move is expected to go a long way in reviving the core sector of the economy including the vital cement and steel sectors, Ananta Barua, Executive Director, SEBI said.

Addressing a conference organized by CII here, he said the Real Estate Investment Trust is a concept that has been prevailing around the world in different forms. The entity should have minimum capitalisation of Rs 500 crore.

"Initially, we were planning to put the minimum capital base of Rs 1,000 crore. However, after a serious of discussions, we have decided to bring it down to Rs 500 core", he said.

The Trust could invest in multiple properties and function on the lines of mutual funds. Investors could pick up units with a minimum face value of Rs 2 lakh. These units would be listed on the stock exchanges and could be traded like stocks or mutual funds. These units would be highly liquid and investors could benefit from capital appreciation, he said adding that the trusts could invest in a single property or multiple properties.